Property prices are highly sensitive to market fluctuations and always reflect the balance between supply and demand.
Earlier this year we saw a degree of price stability and even some modest gains due to demand outstripping supply. Buyers, frustrated after two years of confusion started to re-enter the market, only to be met with a scarcity of properties from which to choose. Sellers simply didn’t want to sell at what they perceived to be the bottom of the market, especially in view of the possible abolition of Home Information Packs after the election. So prices held up well.
However, the election happened and HIPs were abolished making it easier and cheaper to commence marketing. Sellers, hoping to cash in on hearing of the earlier price rises decided to come to market and as a result 43% (51% in London) more homes are currently on the market than at the start of the year, with a 6% rise in stock levels this month alone. However, the RICS has reported a drop in the number of new buyer enquiries nationally in the past month.
This will inevitably have an adverse effect on prices although this is yet to be fully reflected in the summer trading figures. (You may recall in January that we advised people not to delay their sale this year!)
In view of this shift in balance as well as continued economic uncertainty, our advice to sellers is to look very carefully at how your property is positioned in the market in relation to others available for sale, and let their bullish price be a springboard to help you sell yours.
But, as they say on Crimewatch, don’t have nightmares. We seem to be bucking the national trend! We also find our clients are happy to heed our advice and when they do…they move! Why not call us on 023 92 602155 for an initial chat about how we can help you too?
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